Typically,a Bank's Largest Asset Is Its

question 172

Multiple Choice

Typically,a bank's largest asset is its

• A)reserves.
• B)holdings of securities.
• C)deposits of its customers.
• D)loans.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor.

Operating

The day-to-day activities or functions necessary for a business or organization to run effectively and efficiently.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which there are many substitutes.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.